Some former Coastal Companies lots might not be developed

Aim is to lower cost of putting in infrastructure at unfinished subdivisions

Published: Saturday, October 26, 2013 at 9:30 a.m.

Last Modified: Saturday, October 26, 2013 at 3:52 a.m.

The plan for some of the roughly 860 lots formerly owned by The Coastal Companies might be that there is no development at all.

North Myrtle Liquidating Trust, a trustee of Bank of America, has been working with Brunswick County employees to reduce the scope of work needed at Ocean Isle Palms, Seawatch at Sunset Harbor and Ocean Ridge Plantation. The hope is by eliminating some parcels from the plans, it will lower the cost of putting in infrastructure at the developments, according to county engineer William Pinnix.

It's a process that Pinnix said involves removing an area subdivided for development from a certain plan.

“It lowers or decreases the scope of work that needs to be done,” he said.

The land, once owned by The Coastal Companies, was acquired in December by Bank of America in an out-of-court foreclosure settlement that charged the developer had defaulted on a $78 million loan.

The trust's lawyer did not respond to requests for comment.

Since the acquisition of the land by the bank, there has been uncertainty among property owners about the fate of the developments. But the recent meetings with county officials have helped shed some light on what will be occurring at the developments.

Many property owners reached Thursday said they are still unaware of the trust's plans.

But County Attorney Huey Marshall said the moves being made are positive developments.

“They are certainly acting like ... they want to get the properties back to market,” he said.

The next steps involve helping the trust determine which properties can be cut from the developments and re-evaluating infrastructure bonds, which were posted by The Coastal Companies to guarantee basic infrastructure so it could sell lots in the unfinished subdivisions.

Pinnix said the update on the bonds helps the county understand the cost of development in case the trust is not able to finish the work. He added that some of the work at the developments is done.

“(Each) subdivision is in different phases of completion,” he said.

Pinnix added that the county is working to ensure anyone who owns property is considered. He could not say if the liquidations company is looking to buy land from property owners, but he said it was possible.

Pinnix said cutting out a section of the development can only be done on the trustee's parcels, “without affecting anyone else.”

<p>The plan for some of the roughly 860 lots formerly owned by The Coastal Companies might be that there is no development at all.</p><p>North Myrtle Liquidating Trust, a trustee of Bank of America, has been working with Brunswick County employees to reduce the scope of work needed at Ocean Isle Palms, Seawatch at Sunset Harbor and Ocean Ridge Plantation. The hope is by eliminating some parcels from the plans, it will lower the cost of putting in infrastructure at the developments, according to county engineer William Pinnix.</p><p>It's a process that Pinnix said involves removing an area subdivided for development from a certain plan. </p><p>“It lowers or decreases the scope of work that needs to be done,” he said.</p><p>The land, once owned by The Coastal Companies, was acquired in December by Bank of America in an out-of-court foreclosure settlement that charged the developer had defaulted on a $78 million loan.</p><p>The trust's lawyer did not respond to requests for comment.</p><p>Since the acquisition of the land by the bank, there has been uncertainty among property owners about the fate of the developments. But the recent meetings with county officials have helped shed some light on what will be occurring at the developments.</p><p>Many property owners reached Thursday said they are still unaware of the trust's plans.</p><p>But County Attorney Huey Marshall said the moves being made are positive developments.</p><p>“They are certainly acting like ... they want to get the properties back to market,” he said.</p><p>The next steps involve helping the trust determine which properties can be cut from the developments and re-evaluating infrastructure bonds, which were posted by The Coastal Companies to guarantee basic infrastructure so it could sell lots in the unfinished subdivisions.</p><p>Pinnix said the update on the bonds helps the county understand the cost of development in case the trust is not able to finish the work. He added that some of the work at the developments is done.</p><p>“(Each) subdivision is in different phases of completion,” he said.</p><p>Pinnix added that the county is working to ensure anyone who owns property is considered. He could not say if the liquidations company is looking to buy land from property owners, but he said it was possible.</p><p>Pinnix said cutting out a section of the development can only be done on the trustee's parcels, “without affecting anyone else.”</p><p><i></p><p><a href="http://www.starnewsonline.com/section/topic9907"><b>Jason Gonzales</b></a>: 343-2075</p><p>On <a href="http://www.starnewsonline.com/section/news41"><b>Twitter</b></a>: @StarNews_Jason</i></p>